Uploaded by Golden Pi

Retail Investors Can Now Engage More in Corporate Bonds

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Retail Investors Can
Now Engage More in
Corporate Bonds
Introduction
• Investing can seem expensive.
• SEBI’s move lowers corporate bond face values
to make them more accessible.
• Benefits both retail investors and corporations.
SEBI’s Decision
• 2022: Reduced face value to ₹1 lakh.
• 2024: Further reduction to ₹10,000.
• Encourages retail participation in the bond market.
Bond Market Overview
⚬Face Value: The fixed price at which bonds are
issued.
⚬Corporate Bonds: Safer than stocks, better
returns than FDs.
⚬Tradeable in secondary markets.
Impact on Retail Investors
⚬ Lower cost to invest (now ₹10,000 per bond).
⚬ Easier to diversify investments in corporate bonds.
⚬ More affordable than before for small investors.
Benefits of Corporate Bonds
⚬Lower risk compared to stocks.
⚬Fixed returns through interest.
⚬Secondary market trading opportunities.
Conclusion
⚬ SEBI’s move makes bonds affordable and accessible.
⚬ Increased participation benefits both investors and corporations.
Thank you!
To know more, visit:
https://goldenpi.com/blog/essentials/retail-investors-can-now-engage-more-in-corporate-bonds-with-lo
wer-face-values/
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